Organizations that support disenfranchised communities all over the world are desperate for support, and it’s up to us to come together to help. But at the same time, the cost of living is skyrocketing, causing us all to clutch to our savings and become even more resistant to donating.
The news is so overwhelming and the economy can feel so crushing, almost like it is impossible to make a difference. But there’s a way to manage your own money while making a huge impact in someone else’s life. It’s called Kiva, and we want you to know about it.
What is Kiva?
Kiva is a pioneering crowdfunding platform that sends microloans to underserved entrepreneurs and individuals worldwide. According to their website, there are over a billion unbanked people in the world, which means they don’t have a credit card for emergencies, a debit card for easy access to their money, or a credit history to help them get a loan.
Their impact strategy focuses on four key populations:
- Underbanked women
- Refugees
- Systemically marginalized U.S. entrepreneurs
- Communities affected by climate change.
Kiva also innovates through initiatives like zero-interest loans in the U.S. and the Kiva Refugee Investment Fund. Since its launch in 2005, Kiva has enabled over 2.2 million lenders to fund more than $2 billion in loans to over 5 million borrowers in 95 countries. Talk about a global impact!
How Does Kiva Work?
Kiva allows you to give loans for as little as $25 to help these disadvantaged populations. These loans help individuals stock their small businesses, rebuild homes after natural disasters, improve infrastructure, start a new life, or receive schooling to jumpstart a career. Kiva allows you to filter for gender, reason for the loan, and area of the world so you can be specific about where you want your money to go.
Unlike traditional crowdfunding platforms, Kiva borrowers pay you back in small increments over time (they have an average 96.4% repayment rate!). You can choose to keep that money for yourself, or you can recycle it by loaning it to another person on Kiva. That same $25 can keep making an impact over and over again, empowering multiple individuals and communities over time.
Why Loans?
As a start-up ourselves, PufCreativ didn’t seek out donations—we sought out loans, like many other businesses. The entrepreneurs and individuals on Kiva. They’re not looking for charity; they’re hardworking people with dreams, ambitions, and the drive to build something better for themselves and their communities. The only difference is that they lack access to the financial institutions and resources that many of us take for granted.
Traditional banks often won’t lend to them due to factors like lack of collateral, systemic barriers, or simply because they live in underprivileged regions. With Kiva, you’re giving a hand up, not a handout, empowering people with the financial support they need to take control of their future.
Where Does The Money Go?
There are ZERO loan fees, which means 100% of your donation goes to the borrower. You’re not paying platform fees or hidden costs, just directly supporting someone in need. Kiva keeps its operations running thanks to the generosity of lenders who choose to make optional donations.
In fact, Kiva covers more than two-thirds of its operating costs this way, with the rest coming from grants, foundation support, and small service fees from Lending Partners. This community-driven funding model keeps Kiva sustainable, ensuring costs stay low while maximizing the impact of every loan.
How to Get Started on Kiva
Getting started with Kiva is quick, easy, and incredibly rewarding. In just a few steps, you can begin funding life-changing loans and making a real impact:
- Sign Up: Head over to Kiva.org and create a free account. You’ll gain access to a global network of borrowers looking for support.
- Browse Borrowers: Explore hundreds of loan requests from people across the world. You can filter by country, loan purpose, gender, or sector (like agriculture, education, or small business) to find a cause that resonates with you.
- Choose a Loan: Once you find a borrower you’d like to support, you can contribute as little as $25 toward their loan goal. Your contribution joins funds from other Kiva lenders to fully finance the loan.
- Track the Impact: As the borrower repays their loan, you’ll receive updates on their progress and see the difference your loan is making.
- Reinvest or Withdraw: When your loan is repaid, you can choose to withdraw your funds or reinvest them in another borrower, allowing your $25 to continue making an impact over and over again.
It’s that simple. One small loan can create a ripple effect, helping individuals and communities thrive.
Why PufCreativ Supports Kiva
At PufCreativ, we believe in using our platform and resources to uplift communities in meaningful ways. As a startup ourselves, we understand the importance of access to capital. Without funding, even the best ideas can struggle to take off. That’s why Kiva’s mission resonates with us on such a deep level.
By supporting Kiva, we’re contributing to a global movement of economic empowerment and self-sufficiency. If you’re looking for a way to make a real difference in the world and create a sense of community while staying in control of your own finances, Kiva is the way to go. Let’s build a better world together, one loan at a time.
